Appliance Repair And Service Business Insurance Policy Information
Appliance Repair And Service Business Insurance. Appliance service shops offer maintenance and repair assistance for electronic equipment owned by businesses and individual consumers. The service can be located in individual shops, in a home basement or garage, in the appliance or department store where the appliance was originally purchased, or at the manufacturer's premises.
A store or manufacturer may contract with an outside operation to provide service to its customers. The operation may make repairs at customers' premises or offer pick-up and delivery services.
Refrigerators, ranges, dishwashers, washing machines; whatever type of appliances you repair and whether you fix them for residential or commercial property owners, your clients rely on your services to keep the devices they use on a regular basis up and running.
As the owner and operator of an appliance repair business, you do your best to make sure you meet the needs of your clients and maintain the operations of your company; however, despite your best efforts, problems can arise.
To protect yourself from the numerous - and costly - risks that you face as an appliance repair professional, investing in the right type of appliance repair and service business insurance is crucial.
How does commercial insurance protect appliance service and repair professionals? What type of policies should you carry? Read on to find the answers to these questions and more.
Appliance repair and service business insurance protects your company from lawsuits with rates as low as $29/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked appliance repair and service insurance questions:
- What Is Appliance Repair And Service Business Insurance?
- How Much Does Appliance Repair And Service Business Insurance Cost?
- Why Do Appliance Repair & Service Businesses Need Insurance?
- What Types Of Insurance Should Appliance Service And Repair Businesses Have?
- What Are Appliance Repair & Service Risks & Exposures?
- What Does ppliance Repair And Service Business Insurance Cover & Pay For?
What Is Appliance Repair And Service Business Insurance?
Appliance repair and service business insurance is a type of insurance that protects a business that repairs and services appliances from potential financial losses resulting from damages, accidents, or liability claims.
This type of insurance typically includes coverage for property damage, liability for personal injury or property damage, and loss of income or business interruption. It may also include coverage for the cost of repairing or replacing appliances, as well as coverage for the cost of any necessary legal defense.
This insurance is important for appliance repair and service businesses to have in order to protect their assets and financial stability in the event of unexpected incidents.
How Much Does Appliance Repair And Service Business Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small appliance repair businesses ranges from $29 to $47 per month based on location, services offered, payroll, sales and experience.
Why Do Appliance Repair & Service Businesses Need Insurance?
Appliance repair and service businesses need insurance to protect themselves against potential losses and liabilities. These businesses often deal with electrical and mechanical components that can malfunction, which can lead to property damage, personal injury, or other unexpected costs. Insurance can help to cover these costs and ensure that the business can continue to operate smoothly.
Additionally, appliance repair and service businesses may be required to carry certain types of insurance in order to legally operate. This can include liability insurance to cover damages or injuries caused by the business, as well as insurance for the business’s vehicles and equipment.
Insurance can also provide financial protection in the event that the business faces a lawsuit. Appliance repair businesses may be sued for a variety of reasons, including errors or omissions, damage to property, or injuries sustained by customers. Without insurance, a lawsuit could potentially bankrupt the business.
Overall, insurance is an essential aspect of running a successful appliance service business. It helps to protect the business from potential losses, ensures compliance with legal requirements, and provides financial security in the face of unexpected events. So, appliance repair businesses need insurance to safeguard their business.
Instead, your insurance company would cover the costs for you. In other words, appliance repair and service business insurance can save you from financial turmoil; not to mention the fact that as an appliance repair business owner, you are legally required to carry certain types of insurance coverage.
What Types Of Insurance Should Appliance Service And Repair Businesses Have?
There are several types of appliance repair and service business insurance coverage that should be considered. The type of commercial insurance you require depends on a variety of factors, including where in your business is located, the type of services you offer, the size of your business, and whether or not you employ a staff.
While the specific policies you require depend on your unique needs, there are certain types of coverage that every appliance repair business owner should carry. These policies include:
- Commercial Property - This type of policy protects the physical structure of your repair shop and the contents within it from physical damages, vandalism, and theft. For example, if a fire broke out, commercial property insurance would cover the cost of any repairs that would need to be made, as well as any tools, materials, and other items that may need to be replaced.
- Commercial general liability - This type of coverage protects you against third party property damage and physical injury claims. For instance, if a client filed a lawsuit against your business, claiming that an employee damaged their property while making a repair, commercial general liability insurance would cover legal expenses that you may incur, as well as any damages you may be found responsible for.
- Workers' Compensation - Whether you employ a crew of 1 or 11, you'll need to carry workers' comp insurance. If an employee is injured on the job, this policy will cover the cost of his or her medical expenses and lost wages; it can also assist with the cost of litigation, should an injured employee decide to take legal action.
- Bailee's Insurance - If you make repairs to your clients' appliance at your workshop, you should consider investing in bailee's insurance. You are legally responsible for your clients' property while it is in your possession. Should that property be damaged in an act of nature or vandalism, or stolen, this type of coverage will repair or replace the damaged or stolen property.
- Business Auto - This policy protects any vehicles that are used for business-related purposes. For instance, if a work van is involved in an accident, commercial auto insurance will cover the cost of repairs.
These are just a few of the essential types of appliance repair and service business insurance coverage that are important. You can purchase individual policies, or you could select a comprehensive policy that combines various type of coverage under a single plan.
What Are Appliance Repair & Service Risks & Exposures
Premises liability exposure at the repair shop can be moderate if customers visit the premises. Customers should not be permitted in the repair area. There should be adequate aisle space, no frayed or worn spots on the carpet, and no cracks or holes in the flooring.
The number of exits should be sufficient, well marked, and have backup lighting in case of power failure. Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls. If the shop conducts repairs at the customer's home or place of business, repair persons should be trained in proper procedures to prevent premises damage, such as fire, while working on faulty appliances. Personal injury exposures include assault and invasion of privacy.
Failure of the firm to run background checks and review references on employees both increases the hazard and reduces available defenses.
Products liability exposure is generally low. The use of faulty components or improperly repaired appliances can cause electrical problems, resulting in fire or other property damage. Employees should be trained in proper repair procedures. Improper work can nullify warranties and transfer the responsibility for properly working products from the manufacturer to the repair operation. The exposure increases if used and refurbished items are sold.
Workers compensation exposures include electrical shock, cuts, puncture wounds, eye fatigue, foreign objects in the eye, repetitive motion injuries, and burns and splashes during soldering operations. Back, hernia and other lifting injuries may occur from moving heavy appliances or televisions. Off-premises injuries, including trips, falls, automobile accidents, and animal attacks, can result from repairpersons traveling to customers' premises.
Property exposures generally include an office, servicing area, and storage space for supplies and customers' items awaiting pickup. Ignition sources include electrical wiring, heating and air conditioning systems, and overheating of equipment used to repair appliances. Operations may include the use of flammable cleaning solvents, soldering, electrical wiring, and repair of plastic, metal, or wood cabinets. Flammables and combustibles need to be used away from soldering operations. Solvents should be properly stored in fireproof cabinets or rooms.
Theft can be a concern if the shop repairs target items such as TVs, radios, or computers. Appropriate security controls should be taken including physical barriers to prevent access to the premises after hours and an alarm system that reports directly to a central station or the police department.
Crime exposures include employee dishonesty and money and securities, particularly if repair persons collect payment at the time of service. There must be receipt procedures and monitoring to encourage accurate reporting and collection. There must be a separation of duties between persons handling deposits and disbursements and handling bank statements. If there is off-site work, there is also the possibility of employees taking clients' property. Background checks should be conducted before permitting any employee to handle money or visit clients.
Inland marine exposures include accounts receivable if the firm offers credit, bailees customers, computers, tool floater, and valuable papers and records for customers' and suppliers' information. Bailees include the goods of customers while being repaired or if the operation offers pick-up or delivery service. Items should be padded and tied down during transit to prevent damage from breakage or collision. There must be documentation of appliances received and records kept of who owns each item. Security should be appropriate for the type of appliance being worked on.
Off-site exposures can be high due to the tools, equipment, and supplies carried to and possibly stored at customers' premises.
Commercial auto exposure may be limited to hired and non-owned. The exposure increases if the repair shop offers pick-up and delivery service to its customers or repairs items at the client's premises. Custom or specially designed equipment may be installed in vehicles. Drivers should have appropriate licenses with acceptable MVRs. All vehicles must be well maintained with documentation kept in a central location. If vehicles are provided to employees, there should be a written policy regarding the personal use by employees and their family members.
What Does Appliance Repair And Service Business Insurance Cover & Pay For?
Appliance repair and service businesses may face lawsuits for a variety of reasons, including:
Property damage: If an appliance repair technician damages a customer's property, the customer may sue the business for the cost of repairs or replacement. For example, if a technician accidentally damages a customer's floor while moving an appliance, the customer may sue the business for the cost of repairing or replacing the floor.
Insurance protection: General liability insurance can help protect an appliance repair and service business from lawsuits related to property damage. This insurance policy can cover the cost of legal fees and damages awarded to the plaintiff.
Personal injury: If a customer or a third party is injured on the premises of an appliance repair and service business, the business may be held liable. For example, if a customer slips and falls on a wet floor in the repair shop, the customer may sue the business for medical expenses and other damages.
Insurance protection: General liability insurance can also help protect an appliance repair and service business from lawsuits related to personal injury. This insurance policy can cover the cost of legal fees and damages awarded to the plaintiff.
Breach of contract: If an appliance repair and service business fails to fulfill its contractual obligations to a customer, the customer may sue the business for breach of contract. For example, if a business fails to repair an appliance within the agreed-upon timeframe, the customer may sue the business for breach of contract.
Insurance protection: Professional liability insurance (also known as errors and omissions insurance) can help protect an appliance repair and service business from lawsuits related to breach of contract. This insurance policy can cover the cost of legal fees and damages awarded to the plaintiff.
Product liability: If an appliance repair and service business sells defective or dangerous products, the business may be sued for product liability. For example, if a business sells a faulty appliance that causes harm to the customer, the customer may sue the business for damages.
Insurance protection: Product liability insurance can help protect an appliance repair and service business from lawsuits related to product liability. This insurance policy can cover the cost of legal fees and damages awarded to the plaintiff.
In summary, insurance can help protect appliance repair and service businesses from a variety of lawsuits. General liability insurance can cover property damage and personal injury claims, professional liability insurance can cover breach of contract claims, and product liability insurance can cover product liability claims. Having adequate insurance coverage can help a business avoid financial losses and continue to operate successfully.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7629 Electrical and Electronic Repair Shops, Not Elsewhere Classified
- NAICS CODE: 811412 Appliance Repair and Maintenance, 811211 Consumer Electronics Repair and Maintenance, 811213 Communication Equipment Repair and Maintenance
- Suggested Workers Compensation Code(s): 9519 Air Conditioning Systems - Portable Units - Installation, Service or Repair & Drivers
Description for 7629: Electrical and Electronic Repair Shops, NEC
7629 Electrical and Electronic Repair Shops, Not Elsewhere Classified | Establishments primarily engaged in the repair of electrical and electronic equipment, not elsewhere classified, such as electrical household appliances and electrical and electronic industrial equipment. Establishments primarily engaged in the repair of electronic computers and computer peripheral equipment are classified in Industry 7378.
- Aircraft electrical equipment repair except radio
- Appliance repair, electrical
- Business machine repair, electrical
- Electric razor repair
- Electric tool repair
- Electrical measuring instrument repair and calibration
- Electrical repair shops, except radio, television, and refrigerator
- Electronic equipment repair, except computers and computer
- Hearing aid repair
- Medical equipment repair, electrical
- Office machine repair, electrical: except typewriters, computers
- Telephone set repair
- Washing machine repair
Appliance Repair And Service Business Insurance - The Bottom Line
To find out more about additional coverage options, as well as how much coverage you should carry for each policy, consult with an experienced agent that specializes in commercial insurance.
Additional Resources For Contractors & Home Improvement Insurance
Learn about small business contractor's insurance, including what it covers, how much it costs - and how commercial insurance can help protect your contracting business from lawsuits.
- Air Conditioning Systems Installation Repair
- Appliance Repair & Service
- Blacksmith & Metal Workers
- Boat Repair & Dry Docks
- Boiler Contractors
- Builders Risk
- Building Cleaning & Maintenance Services
- Cabinet Installer
- Cable And Satellite TV Installer
- Chimney Sweep
- Cistern Contractors
- Contractor Liability
- Curtain Cleaners
- Deck Builders
- Door And Window Installers
- Dryer Vent Cleaning
- Drywall Contractor
- Electrical Contractors
- Environmental Remediation Contractors
- Fence Installation
- Fire Sprinkler Contractors
- Fire & Water Restoration Contractors
- Flooring Contractor
- Furniture Repair
- Garage Door Installer And Repair
- General Contractors
- Glass Contractor
- Glazier Insurance
- Gutter Installation And Repair
- House Cleaning
- HVAC Contractor
- Insulation Contractor
- Janitorial Cleaning Services
- Lawn Care
- Lawn Irrigation Sprinkler System Installation
- Oil And Gas Well Drilling Contractors
- Paperhanging Contractors
- Plastering And Stucco Contractor
- Pressure Washing Contractors
- Propane And Fuel Dealers
- Rug, Upholstery & Carpet Cleaning
- Sandblasting Contractors
- Security Alarm
- Septic Tank Cleaning
- Siding Contractor
- Sign Installation & Repair
- Solar Panel Installers
- Snow Plow
- Stone And Tile Installer
- Surety Bonds
- Swimming Pool Contractor
- Swimming Pool Service And Maintenance
- Tank Cleaners
- Tool Grinding And Repair
- Tree Surgeon
- Tree Trimming
- Upholstery Shop
- Waste Haulers & Garbage Collection
- Water Well Drilling
- Welding Contractor
- Wildlife & Pest Control
- Window Cleaning
- Specialty Contractors
The contracting industry is a field that involves a lot of risks, both for the contractor and for the clients they work for. This is why commercial insurance is so important for contractors. Insurance can protect contractors from a variety of potential losses, such as:
Liability: If a contractor causes damage to a client's property or if a client is injured while on a job site, the contractor could be held legally responsible. Liability insurance can cover legal fees and any settlements or judgments that may be awarded.
Property damage: Contractors often use a lot of expensive equipment and tools, and there is always a risk that this equipment could be damaged or stolen. Commercial property insurance can help cover the cost of replacing damaged or stolen equipment.
Business interruption: If a contractor is unable to work due to an unforeseen event, such as a natural disaster, insurance can help cover their lost income during this time.
Workers compensation: If a contractor or one of their employees is injured on the job, worker's comp can help cover medical expenses and lost wages.
Overall, commercial insurance is an important risk management tool for contractors. It can provide financial protection against a wide range of potential losses, helping contractors to stay in business and continue serving their clients.
Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Contractors' Equipment and Tools, General Liability, Employee Benefits Liability, Umbrella Liability, Automobile Liability and Physical Damage, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Accounts Receivable, Builders Risk, Computers, Goods in Transit, Installation Floater, Valuable Papers and Records, Cyber Liability, Employment-related Practicesand Stop Gap Liability.